Banyan cos common stock currently sells for 4300 per share


Banyan Co.'s common stock currently sells for $43.00 per share. The growth rate is a constant 8.4%, and the company has an expected dividend yield of 2%.The expected long-run dividend payout ratio is 30%, and the expected return on equity (ROE) is 12%. New stock cn be sold to he public at the current price, but a floation cost of 5% would be incurred . What would be the cost of the new equity? Round answer to two decimal.

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Financial Management: Banyan cos common stock currently sells for 4300 per share
Reference No:- TGS02159060

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